Govt to issue rules on partnerships

Govt to issue rules on partnerships

JAKARTA (JP): The government has decided to move ahead with
its plan to require large companies to form partnerships with
small and medium companies and cooperatives, a minister said
yesterday.

The Coordinating Minister for Production and Distribution,
Hartarto, said President Soeharto had ordered the Ministry of
Cooperatives and Small Enterprises and related agencies to
prepare a regulation to encourage the partnerships.

"The ministry and related agencies are working on the criteria
for the obligation of large companies to help small businesses,"
Hartarto said after a cabinet meeting on poverty alleviation.

He quoted Soeharto, who chaired yesterday's meeting, as saying
partnerships were needed to boost the country's economy, Antara
reported.

The government has been promoting linkages between large and
small firms as part of its poverty alleviation policy.

Last year, Soeharto launched the Jimbaran Group, a gathering
of 41 tycoons, which aims to develop programs to help small
businesses.

Analysts criticized the partnership program as being
ineffective at alleviating poverty, because it relied too much on
big companies.

At yesterday's meeting which lasted over three hours, Hartarto
said the President had also ordered the Ministry of Home Affairs,
the Ministry of Agriculture and the Ministry of Cooperatives to
transfer the ownership of the government-owned fish auction place
to a cooperative.

"Agriculture minister Sjarifudin Baharsjah told the president
that it was important that the fish auction was managed by a
cooperative," he said.

The meeting, held every three months, is the second meeting on
the poverty alleviation program. (das)